EMI Calculator
Calculate exact Equated Monthly Installment (EMI), total interest payable, and amortization for home, car, and personal loans.
About the EMI Calculator
The CalcNest EMI Calculator provides an instant, accurate calculation of your Equated Monthly Installment (EMI) for home loans, car loans, personal loans, and education loans. Whether you are purchasing your first home or financing a vehicle, understanding your monthly outflow and total interest cost is crucial for sound financial planning.
In standard reducing balance loans, the interest portion constitutes a major share of your initial EMIs. Over time, as the principal balance decreases, the interest share shrinks while principal repayment increases.
Mathematical Formula
EMI = P × r × (1 + r)^n / ((1 + r)^n - 1) Where P is loan principal, r is the monthly interest rate (Annual rate / 12 / 100), and n is the total number of monthly payments.
Variables & Components
Worked Example: ₹10,00,000 Home Loan at 8.5% p.a. for 20 Years
Suppose you avail a home loan of ₹10,00,000 for a duration of 20 years (240 months) at an annual interest rate of 8.5%.
Step-by-Step Calculation
- Convert annual interest rate to monthly rate: r = 8.5 / (12 × 100) = 0.0070833
- Calculate compounding growth factor: (1 + 0.0070833)^240 = 5.4194
- Apply EMI formula: EMI = 10,00,000 × 0.0070833 × 5.4194 / (5.4194 - 1)
- Calculate monthly installment: EMI = ₹8,678 per month
- Compute total loan repayment: 240 × ₹8,678 = ₹20,82,776 (Total Interest = ₹10,82,776)
How to Use This Calculator
Enter your total borrowed Loan Amount (Principal) using the input box or slider.
Specify the Annual Interest Rate offered by your lender.
Choose your Loan Tenure in either Years or Months.
Instantly observe your Monthly EMI, Total Interest Payable, and Principal-Interest breakdown.